Jefferies is reiterating its “hold” recommendation on United Overseas Bank with a $16.00 target price.
Jefferies says UOB needs to worry about its asset quality and slowing loans growth after the Singapore bank reported a 4.4% decline in its 1Q earnings to $766 million.
Jefferies notes a 5% on-year rise in UOB’s growth and a positive outlook for retail and wealth management sectors.
However, the bank is cautious about its commercial loans business amid slower economic growth.
The bank’s ratio of bad loans to the total was also stable at 1.4%.
“However, we are not yet comfortable to suggest that the credit cycle has bottomed out,” says Jefferies.
UOB is down 0.74% at $18.71, underperforming the 0.5% fall in the benchmark Straits Times Index.
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Jefferies says UOB needs to worry about its asset quality and slowing loans growth after the Singapore bank reported a 4.4% decline in its 1Q earnings to $766 million.
Jefferies notes a 5% on-year rise in UOB’s growth and a positive outlook for retail and wealth management sectors.
However, the bank is cautious about its commercial loans business amid slower economic growth.
The bank’s ratio of bad loans to the total was also stable at 1.4%.
“However, we are not yet comfortable to suggest that the credit cycle has bottomed out,” says Jefferies.
UOB is down 0.74% at $18.71, underperforming the 0.5% fall in the benchmark Straits Times Index.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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